The Blue Jays have come a long way from their last-place 2004 season, and they managed to finish higher than third place for the first time since they won back-to-back World Series in 1993. To take the next step–making the playoffs–Toronto once again will have to rely on an increased payroll rather than major contributions from its farm system.

Toronto had baseball’s sixth-lowest payroll at $46 million in 2005, but jumped to 16th overall at $72 million by Opening Day 2006. With little impact talent in their farm system, the Blue Jays signed free agents A.J. Burnett and B.J. Ryan and traded for Troy Glaus and Lyle Overbay. General manager J.P. Ricciardi isn’t shy about pointing out the payroll discrepencies that exist between his club and the big-spending Yankees and Red Sox in the American League East.

Ownership has signed off on another payroll increase, and Ricciardi likely will have as much as $95 million at his disposal for 2007. Finding a shortstop is Toronto’s top priority, and the club’s hole at that position is all the more glaring considering the Blue Jays used first-round picks on college shortstops Russ Adams and Aaron Hill in Ricciardi’s first two drafts. Neither was considered a lock to stay at the position, and Adams regressed on both offense and defense in 2006.

In their five drafts under Ricciardi, the Blue Jays have focused almost solely on college players, with more of an emphasis on a track record of statistical success than on potential high ceilings. Adam Lind, who hit .367 in his September debut, may be the first impact bat drafted since Ricciardi’s arrival, but there are few behind him in the system with the exception of 2006 first-round pick Travis Snider. The system is stocked primarily with control pitchers, with most of the electric arms (led by 2006 rookie righthanders Brandon League, Dustin McGowan and Francisco Rosario) signed on former GM Gord Ash’s watch.

Snider, a high school outfielder, snapped Toronto’s five-year streak of taking a college player with their top pick. He won MVP honors in the Rookie-level Appalachian League, as did Lind in the Double-A Eastern League. Because the Blue Jays gave up their second- and third-round picks in the 2006 draft to sign Burnett and Ryan, they invested $725,000 in 16-year-old Venezuelan third baseman Balbino Fuenmayor after he had an impressive workout at Rogers Centre. They also gave six-figure bonuses to four late-round choices: righthanders Chase Lirette (16th), Kyle Ginley (17th) and Graham Godfrey (34th), plus second baseman Jonathan del Campo (20th).

On the field, the Blue Jays’ aggregate minor league winning percentage slipped under .500 for the first time since 2002. Three teams advanced to the playoffs, with Dunedin advancing the furthest, losing in the high Class A Florida State League finals. Toronto announced at season’s end that it won’t operate an Appy League team in 2007, ending a four-year stint at Pulaski. If the Jays don’t add an affiliate in the Rookie-level Gulf Coast League, they’d be the only organization with just five North American affiliates.